Challenging Times Ahead For IT Companies And Professionals

Companies are increasingly hiring freelance or contract IT professionals for specialized projects, and remote work is gaining prominence, allowing companies to access a broader talent pool. The demand for specialised IT skills is surging

The year 2024 is expected to be a period of significant change for IT hiring strategies. The overall market is expected to grow by eight per cent over the next three to four years, but this growth will be unevenly distributed across different segments of the IT industry. IT hiring was expected to be relatively static in the first half of the year, due to a number of factors, including the ongoing macroeconomic headwinds in the US, Europe, Australia, and New Zealand.

Now hiring is expected to pick up pace, driven by demand for generative AI, niche to ultra-niche skills, and QA engineers with mixed technology. However, it is important to note that the skills required for these roles are not readily available, so there may be some challenges in finding suitable candidates.

In keeping with the times and as an effective strategic approach to enhance client relationships with cost-effective alternatives to the traditional onsite locations, most IT services companies are pressing the nearshore button. By establishing operations in nearby countries, tech giants can benefit from shared time zones and cultural similarities, which facilitate easier communication and collaboration.

It has also been proven that it makes economic sense to outsource businesses, especially those into IT to companies in a border-sharing or nearby country.

In recent years, many IT companies have expressed their intent to expand their nearshore presence in regions such as Costa Rica, Morocco, Romania and the Philippines. For instance, HCLTech plans to double its nearshore workforce from over 23,000 in the 2023-24 financial year to nearly 46,000 by 2025-26. Similarly, Infosys has reported an increase in its nearshore headcount, rising to 64,240 in 2023-24 from 49,473 in 2021-22.

Tata Consultancy Services (TCS), one of the popular tech giants, is also making strides in this area, having recently launched a new delivery center in Warsaw, Poland, with plans to double its workforce to over 1,200 within a year. TCS has also established TCS Pace Studios, which are designed to help clients explore and implement emerging technologies.

A similar facility was opened in Stockholm this August, further solidifying the presence of TCS in the Nordics, where the company employs over 20,000 individuals from across Sweden, Norway, Denmark, and Finland.

According to research, the top 11 in-demand contemporary job profiles will include: data scientist; data analyst; blockchain engineer; UX designer; cyber security engineer; cloud developer; DevOps engineer; digital marketing specialist; project manager; product manager and software developer.

From surging demand for niche digital skills to the expanding gig economy and focus on employee wellbeing, are the forces that will shape hiring, campus recruitment, and the IT sector in 2024. AI, automation, and data analytics are revolutionizing talent acquisition.

Technology, media, gaming, financial services, and retail sectors are anticipated to lead the way into 2024, driven by rapid industry growth and the ensuing demand for skilled professionals. Many companies are expected to continue hiring IT professionals to fill open positions that have been created through attrition or expansion.

There will also be a continued demand for IT professionals to provide support and maintenance for existing IT systems.

However, amid these positives, some companies may be forced to lay off IT workers due to the macroeconomic headwinds, although there is a marked increase in hiring flexible workers to manage the demand-supply ratio better.

The Indian IT industry is adapting itself to the evolving market demands by embracing flexible job roles and staffing models. Companies are increasingly hiring freelance or contract IT professionals for specialized projects, and remote work is gaining prominence, allowing companies to access a broader talent pool. The demand for specialised IT skills is surging, particularly in areas like ERP, with SAP BO, Salesforce, and Workday gaining traction.

As the demand for specialised IT skills continues to grow, companies are focusing on upskilling and reskilling their existing workforce rather than seeking fresh talent through campus placements. Additionally, the increasing adoption of automation and artificial intelligence (AI) is expected to displace some routine jobs, further reducing the need for entry-level IT professionals recruited through campus programs.

Artificial intelligence (AI), automation, and data-driven insights are transforming talent acquisition and enhancing candidate experiences in the Indian IT industry. These technologies are being employed to streamline recruitment processes, improve candidate matching, personalize candidate experiences, promote diversity and inclusion, and enhance candidate retention.

For instance, a virtual recruiter powered by AI can answer candidate queries and provide personalized feedback, while other organisations are utilizing data-driven insights to identify early signs of potential employee turnover and implement preventive measures. Few others employ AI chatbots to schedule interviews and send follow-up emails to candidates.

The continuous advancement of AI, automation and data-driven insights is expected to bring forth even more innovative and effective applications in the years to come, further revolutionizing talent acquisition and elevating candidate experiences in the Indian IT industry.